Coinbase Global (NASDAQ:COIN) Shares Gap Down on Disappointing Earnings

Coinbase Global, Inc. (NASDAQ:COIN) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $377.76, but opened at $335.14. Coinbase Global shares last traded at $319.74, with a volume of 9,112,417 shares.

The cryptocurrency exchange reported $0.12 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.91 by ($0.79). Coinbase Global had a net margin of 40.87% and a return on equity of 16.95%. The company had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.68 billion. During the same period in the previous year, the firm posted $0.14 earnings per share. The firm’s revenue for the quarter was up 3.3% compared to the same quarter last year.

Analysts Set New Price Targets

Several brokerages have commented on COIN. Keefe, Bruyette & Woods raised their price objective on shares of Coinbase Global from $183.00 to $205.00 and gave the stock a “market perform” rating in a report on Friday, May 9th. Canaccord Genuity Group reissued a “buy” rating and issued a $400.00 target price on shares of Coinbase Global in a research report on Friday. JPMorgan Chase & Co. lowered their target price on Coinbase Global from $276.00 to $215.00 and set a “neutral” rating for the company in a research note on Friday, May 9th. Monness Crespi & Hardt cut Coinbase Global from a “buy” rating to a “neutral” rating in a research note on Monday, July 28th. Finally, Williams Trading set a $405.00 price objective on Coinbase Global in a report on Thursday. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and thirteen have issued a buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $344.55.

Insider Activity at Coinbase Global

In other Coinbase Global news, CEO Brian Armstrong sold 336,265 shares of the business’s stock in a transaction on Wednesday, June 25th. The shares were sold at an average price of $362.61, for a total transaction of $121,933,051.65. Following the completion of the sale, the chief executive officer directly owned 526 shares in the company, valued at approximately $190,732.86. The trade was a 99.84% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Frederick Ernest Ehrsam III sold 30,167 shares of the stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $252.68, for a total value of $7,622,597.56. Following the transaction, the director directly owned 10,417 shares in the company, valued at $2,632,167.56. The trade was a 74.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,208,340 shares of company stock valued at $439,997,456 over the last three months. 17.65% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Coinbase Global

Several hedge funds and other institutional investors have recently made changes to their positions in COIN. Mascagni Wealth Management Inc. purchased a new position in shares of Coinbase Global during the 4th quarter worth $25,000. Copia Wealth Management bought a new position in Coinbase Global in the 4th quarter worth $26,000. Bessemer Group Inc. raised its holdings in Coinbase Global by 297.4% in the 1st quarter. Bessemer Group Inc. now owns 151 shares of the cryptocurrency exchange’s stock worth $26,000 after purchasing an additional 113 shares during the period. McClarren Financial Advisors Inc. purchased a new position in Coinbase Global during the first quarter valued at $30,000. Finally, Cullen Frost Bankers Inc. bought a new stake in Coinbase Global during the second quarter valued at about $30,000. Hedge funds and other institutional investors own 68.84% of the company’s stock.

Coinbase Global Stock Down 16.7%

The company has a quick ratio of 2.52, a current ratio of 2.52 and a debt-to-equity ratio of 0.40. The company has a fifty day simple moving average of $327.63 and a 200-day simple moving average of $259.64. The firm has a market cap of $79.89 billion, a P/E ratio of 30.43, a price-to-earnings-growth ratio of 26.32 and a beta of 3.70.

About Coinbase Global

Coinbase Global, Inc provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions.